international marketing and information

Real estate is offered worldwide. Bolivia is only 1 of N places but we think that there are significant opportunities for small dollar real estate investors in the $35,000 to $50,000 range.

Properties generally aren’t improved in any way before going on the market: Properties generally go on the market as-is in bolivia. This creates plenty of opportunity to buy at a lower price than asking when offering a cash sale.  This lower price can be as much as 20%-30%.

Prices are low so financing isnt needed: Properties in outlying areas that need work can be bought for as low as US$10,000. The price range that we see that is ideal for local buyers is the US$40,000 to US$75,000 range.  This seems to be the sweet spot for both local buyers and those returning from Spain and other parts of Europe to buy properties.

Less risk by selling into the local market: Many international locations have properties that aren’t geared for the local market. After 3 years in the local market, we’ve found that there is a constant local requirement for housing. This requirement is only increased by the number of local Bolivians working in Europe, USA, and Japan that want to return and invest their savings in a local property.

So, as an illustrative example, we are aware of residential properties that are asking in the the $35,000 range, can be purchased at 30% less due to their current condition, and only need $5000-$8,000 worth of work.  They could then be sold 45-60 days later at US$45,000 or more.  Many investors would be able to swing one or two of these deals each month at these prices.

if you are interested in exploring opportunities in Bolivia, contact Alicia@boliviabienesraices.com

Note: this is not an offer or solicitation to buy.  All real estate investment involve risks and the above example may or may not representative of all opportunities. You should should perform your own due diligence and consult your legal and tax advisers before engaging in any real estate purchase.

Interesting article about changes that international buyers should be aware of when considering real estate purchases in India. 

http://tinyurl.com/dfr5mz

With real estate fraud on the rise worldwide, I wouldn’t be surprised if more governments dont start payong closer attention to international real estate transactions.

We get calls, emails, blog comments, and notes on Facebook all of the time about how there is a boom going on in [insert name of international location here] and how we should be directing buyers there. Between us, we’ve often been to many of the recommended places.  How should someone that doesnt know about the local market proceed with an international real estate opportunity…especially when the developer or agent explains that there is a “boom” going on.

Here are our observations from first hand experience that may help:

- A building boom doesn’t always mean a buying boom: Just because lots of units are being built, doesnt mean that anyone is actually buying them. Building booms can occur for a multitude of reasons other than demand. It may just be speculators which, unless you got in early and have impeccable timing, actually increases the chances that you’ll not do as well as hoped on your investment. Another reason is that building permits aren’t well controlled. After all, if there was a real buying boom, why would they be looking for customers so hard?

- Look carefully at the values of nearby properties: We know of places where land is marketed to international buyers at 10x the value that the same land is being sold to locals. In some cases, the local language versions of property websites have pricing that is 60%-80% of the prices for the exact same property on the English version of the site. There is no MLS or code of ethics in place in many areas. Buyer beware….

- Think about the future: How will future construction impact your investment? We know of one area where building were being built from the back of the land to the front with each new row being sold as “ocean view”.  Many absentee investors might be surprised to find that their once broad ocean view is now largely blocked by construction to the front.

- Look at the past: Study the builder’s reputation for past projects. Sometimes the golf courses dont get built or people get ripped off. Dont just ask the developer - also do an online search about the developer and each of their past projects. Ask about the builder and past projects in well visited forums about international investment.  Bad deals often generate quite a few unhappy customers willing to share their grief with you online.  Great developers build bunches of happy customers.

- Take a trip on your own dime: As the economy slows, many developers are offering paid trips to potential buyers. I’d recommend traveling on your own dime so that you have the freedom to do some of the research above. There are great deals out there…take the time to find them.

Any real estate purchase contains risk. International investment is no different. Dont take any observation or opinion made in this article as legal or financial advice - consult your legal and financial professional. We are also available on a consulting basis to help you make the right international real estate purchase in the US or Latin America.

The NY Times has an interesting article on one couple’s experience with buying real estate in Rio de Janeiro. The world is filled with many interesting international real estate opportunities.